Law
Short-term rentals in condominiums: what owners can do
Short-term rentals in a Portuguese condominium: the owners' objection, an extra fee of up to 30%, hostels and common-area rules. A practical guide.
· 6 min read · Condgest
In a building under the horizontal property (propriedade horizontal) regime, the condominium does not need to authorise a short-term rental (alojamento local, AL) in a unit (fração autónoma) intended for housing, but it is not left without options. The owners' meeting can object to a short-term rental that disturbs the building, through a reasoned resolution of more than half of the permillage, with the decision resting with the mayor of the municipality (Article 9 of Decree-Law 128/2014, as amended by Decree-Law 76/2024). It can also set an additional contribution of up to 30% of that unit's annual condominium fee (Article 20-A) and lay down rules for the use of the common areas that guests must follow.
A regime that has changed three times
The legal regime for short-term rentals is Decree-Law 128/2014 of 29 August. In recent years it has been amended three times as far as condominiums are concerned:
| Legislation | What changed for the condominium |
|---|---|
| Law 62/2018 | Created the owners' objection, the additional contribution and the requirement for authorisation for hostels |
| Law 56/2023 (Mais Habitação) | Tightened the objection, which then required two thirds of the permillage |
| Decree-Law 76/2024 | In force since 1 November 2024: returned to a majority of more than half of the permillage and handed the decision to the mayor |
Much of the information in circulation refers to earlier versions.
The owners' objection
When it is possible
The owners' meeting (assembleia de condóminos) can object to a short-term rental in a unit where there is repeated and proven conduct that disturbs the normal use of the building, or conduct that causes nuisance and affects the owners' rest (Article 9(2) of DL 128/2014).
It is not enough that the owners dislike having tourists in the building: the objection has to rest on repeated, demonstrable facts.
Majority and form
The resolution (deliberação) must be reasoned and approved by more than half of the building's permillage. What counts is the total permillage of the building, not just that of the owners present at the meeting. The item must be on the agenda in the notice of meeting, and the minutes must describe the facts on which the objection is based.
Who decides
The owners' meeting does not cancel the registration itself. It sends the resolution to the mayor of the relevant municipality, who considers the request and decides whether to cancel the establishment's registration. Before deciding, the mayor may invite the parties to reach an agreement. Municipal regulations may also provide for a short-term rental ombudsman to help manage these conflicts.
Banning short-term rentals in the building
The objection deals with a specific short-term rental that causes problems. Banning the activity in the building in general is a different matter.
DL 128/2014, as amended by DL 76/2024, provides that operating a short-term rental in a unit does not constitute a use other than the purpose for which it is intended, for the purposes of Article 1422(2)(c) of the Civil Code. It does, however, preserve any ban set out in the constitutive title (título constitutivo) of the horizontal property or in the condominium regulations.
A ban by amending the regulations requires a majority of two thirds of the building's permillage and only has effect for the future, applying to registration applications submitted after the resolution. A short-term rental that is already registered is not affected.
What if the constitutive title says "housing"?
In 2022, the Supreme Court of Justice laid down binding case law that a statement in the constitutive title that the unit is intended for housing prevented short-term rental use (Uniformising Judgment 4/2022). The rule introduced by DL 76/2024 points the other way, and there are already Court of Appeal (Relação) decisions applying it. Anyone wishing to rely on the constitutive title should take legal advice before going ahead.
If the title does not state the purpose of each unit, a change of use needs the authorisation of the owners' meeting, approved by two thirds of the total value of the building (Article 1422(4) of the Civil Code).
The additional contribution to the fees
The condominium may require the short-term rental unit to pay an additional contribution corresponding to the costs arising from the greater use of the common areas, capped at 30% of that unit's annual condominium fee (Article 20-A of DL 128/2014). The resolution follows Article 1424 of the Civil Code, which governs how common expenses are shared. Some practical points:
- the contribution should be based on the additional costs (cleaning, lift, wear on doors and locks), and not act as a penalty;
- the minutes should state the percentage and the units covered, so that they can serve as an enforceable title if it is not paid, like unpaid fees.
Hostels: authorisation is still needed
The general rule that no authorisation is needed has one exception. In a building under horizontal property where there is also housing, a hostel cannot be set up without the owners' authorisation, and the corresponding resolution must accompany the registration application.
Rules for the use of the common areas
The condominium regulations govern the use, enjoyment and upkeep of the common areas (Article 1429-A of the Civil Code), and it is for the condominium administrator to regulate the use of common things (Article 1436). These rules apply to anyone using the building, including guests.
The short-term rental law reinforces this point:
- the information book the operator provides to guests must include the condominium's practices and rules relevant to the accommodation and the common areas, and the telephone contact of the person responsible for the establishment;
- the operator is jointly and severally liable with the guests for any damage they cause to the building, and must hold multi-risk civil liability insurance (Article 13-A of DL 128/2014).
The regulations should be clear on what matters most: noise, use of the lift with luggage, rubbish, key lockboxes and access to roof terraces or swimming pools.
What to do when a short-term rental causes problems
1. Record every incident
Date, time, what happened and who witnessed it, with photographs, police reports and written complaints. This is what proves "repeated and proven" conduct.
2. Contact the person responsible
Use the contact details of the person responsible for the establishment. Many problems are solved at this stage, especially when the operator does not live in the building.
3. Put it in writing
The administrator sends the operator a letter setting out the incidents and the rules in the regulations that were broken. If there is damage to the common areas, they ask the operator, who is jointly liable with the guests, to repair it.
4. Take the matter to the owners' meeting
Put on the agenda the objection to the short-term rental in the unit, the additional contribution or the amendment to the regulations, as the case may be. See how to prepare the meeting in our owners' meeting guide.
5. Send the resolution to the City Council
Once the objection is approved, send the resolution and the supporting documents to the mayor, keeping proof that they were sent.
This article is for information only and does not replace legal advice on a specific case.
A short-term rental in your building?
Condgest prepares the notices of meeting and the minutes of owners' meetings, issues the fee notices for each unit and logs every incident with a person responsible and a response deadline. Find out about our services or request a proposal.
This article is for information only and is no substitute for legal advice on a specific case. It is a translation of the Portuguese original; the law referred to is Portuguese law.